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Slow-Motion Central Bankers Put Their Maestro Status on the Line

Fed and ECB strategy of moderation is fraught with risks. Still, one Fed president says, “abrupt and aggressive action can actually have a destabilizing effect on growth and price stability. The most important thing is to be measured at our pace.”

By Craig Torres & Jana Randow | February 22, 2022 at 09:13 AM

The world’s most powerful central bankers sound like they’re in no rush to speed ahead on their new inflation-fighting path.

In the U.S. and Eurozone, central banks have pivoted toward monetary tightening in recent weeks—but they want to take it slowly, even though prices are rising at the fastest pace in decades. That suggests they still see choking the recovery and eliminating jobs as the bigger risk, after persistent unemployment last decade stoked political turmoil across the Western world.

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